The Uses in Forex Trading of Moving Averages and MACD

Moving Averages: If you consider the "trend-is-your-friend" statement of technical analysis as a true sentence, the moving averages will be very helpful. Moving averages tell the average price in a given point of time over a defined period of time. They are called moving because they reflect the latest average, while adhering to the same time measure.

A weakness of moving averages is that they lag the market, so they do not necessarily signal a change in trends. To address this issue, using a shorter period, such as 5 or 10 day moving average, would be more reflective of the recent price action than the 40 or 150-day moving averages.

Alternatively, moving averages may be used by combining two averages of distinct time- frames. Whether using 5 and 20-day MA, or 40 and 150-day MA, buy signals are usually detected when the shorter-term average crosses above the longer-term average, i.e. price will likely go up. Conversely, sell signals are suggested when the shorter average falls below the longer one, i.e. price will likely go down.

There are three kind of mathematically distinct moving averages: Simple MA; Linearly Weighted MA; and Exponentially Smoothed. The latter choice is the preferred one because it assigns greater weight for the most recent data, and considers data in the entire life of the instrument making of it a more accurate indicator. More information here; http://www.1-forex.com

MACD: Moving Average Convergence Divergence: MACD is a more detailed method of using moving averages to find trading signals from price charts. Developed by Gerald Appel, the MACD plots the difference between a 26-day exponential moving average and a 12-day exponential moving average. A 9- day moving average is generally used as a trigger line, meaning when the MACD crosses below this trigger it is a bearish signal and when it crosses above it, it's a bullish signal, with the corresponding implications for the currency's price in each particular situation.

As with other studies, traders will look to MACD studies to provide early signals or divergences between market prices and a technical indicator. If the MACD turns positive and makes higher lows while prices are still tanking, this could be a strong buy signal. Conversely, if the MACD makes lower highs while prices are making new highs, this could be a strong bearish divergence and a sell signal.

Adrian Pablo
Forex Trader and Freelance Writer
http://www.1-forex.com

Forex and Futures Trading: Are You Really Prepared to Trade?

So you have some speculative funds and believe you can master the Forex or Futures Trading markets. Hang on for the reality and do yourself a favor by considering this.

Before you blindly believe the hype about Forex and Futures Trading.

Before you spend money on the greatest futures trading system ever.

Before you put any real money in a futures trading account.

Just consider the reality of the statistics and answer the following questions because they apply to you and your pocketbook.

Do you have $20,000 or more in speculative funds? I am talking about money that means nothing to your current standard of living. Can you look at it as money that you would be willing to start a fire with? The studies indicate this to be a very realistic expectation of the capital needed to learn the ropes of futures trading.

Have you spent 3 to 5 years studying and learning how futures trading works? Most futures trading veterans agree that buying 1 or 2 books or trading courses is not enough. The education is part learning from the success of others and part developing your own trading style. This education comes at a heavy price. Plan on purchasing several educational works. Are you willing to pay the price?

Are you sure that you have the mental discipline required to be a successful futures trader? In my opinion this is the major unknown to futures trading. Many professional traders express that their trading success is 80-90% mental discipline. Paper trading does not account for the emotional aspects and effects of a position moving against you. Now what if you had 3, 4 or 5 losing trades in a row? Do you have the discipline to stick with your trading system?

If your honest answer to any of the above is No, then you should consider putting yourself into a holding pattern until all conditions can be accomplished. Failure to effectively overcome any one of the above obstacles will almost certainly spell futures trading disaster.

Forex and futures trading can be a highly rewarding activity. The rewards are earned at a price. Do not believe the offers that claim how incredibly easy it is to make a fortune. It is not true. Any futures trading book or course you purchase should be viewed as a tool to learn by. It will be one step of many on your path to trading success.

Merv Thompson Author and operator of http://www.futures-brokers-review.com a website providing tools, resources and reviews for todays trader.

Find out about an exciting alternative to Forex and Futures Trading at E-currency Trading

The Benefits Of Working For Yourself With A Home Based Business

Like most people, you've undoubtedly thought about how great it would be to work from home. Just imagine, working for yourself with no one to answer to.

What would it feel like to rise in the morning and plan your day according to what works for you. You could take the day off when you want to, not when it works for your company. You can give up the stress of being an employee to begin working from home.

If you're ready for a career advancement in becoming your own boss, here are some of the perks that you can expect to enjoy.

10 Second Commute

Just think of all the extra time that you will have when you can give up your daily commute. Your commute will now involve a 10 second walk to your home office. Instead of wasting 8-10 hours a week commuting to work, you will receive the benefit of a full extra workday a week to devote to building your business.

Write Your Own Paycheck

When you work for someone else, you are increasing their bottom line with your hard work. However, you are probably not receiving the compensation that you deserve. That's all a distance memory now. The profits that you earn from your efforts will go into your pocket.

Decreased Expenses

When you stop leaving the house to work, you start putting money back into your pocket. You will be amazed at how quickly things like gas for your car, clothing costs, and eating meals out really add up. An added benefit are all of the tax benefits that you can take advantage of by working from home.

Time Freedom

The truly remarkable benefit of creating a profitable work at home business is that it gives you the flexibility to work when you want. You are accountable only to yourself. So the more you work, the more money you can expect to make. You also won't need special permission to attend your daughter's afternoon school play or your son's baseball practice.

Are you ready to take a leap of faith and start signing your own paycheck? Once you choose your business to build, you can create a steady stream of income and take control of your time and your life. It will require hard work and persistence, but if you don't give up, you will be pleased with the results that you can achieve.

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If you are looking to start working from home, visit Brian's Wealthy Marketer website.

Brian McCoy is a six figure earner and one of the top income earners in the home business industry. Brian works with entrepreneurs around the world. He devotes the time, energy, and effort into his team and works with them to ensure their success.

You Can Find the Best Home Based Internet Business Opportunity

The dream of becoming a successful home based business entrepreneur is alive and well in millions of people. Far fewer actually take the leap and make a go of it. Most just dream big dreams and let it go at that. If you're one of those who actually wants to find the best Internet home based business, congratulations! You're in the minority that is actually taking an active role in their own success.

Now that you're really looking for success, how can you go about finding a good home based business you can run from the Internet? First, you should know what makes a great home based business.

Premise or Business Model - The business should be based on a sound premise. There should be a strong demand for your products and/or services, and a realistic expectation that you will be able to make money from your business. Unlike many of the dot-com businesses of the last decade, it should make money right from the start, not burn your precious cash building a customer base.

Scalability - It should be a business that you can run by yourself at first, then easily grow larger. Your business should have the potential to scale up to what ever size business you desire by simply adding the appropriate resources.

Potential - It should have the potential to achieve whatever success goals you've set for yourself. Weather you're striving for a little extra income, a replacement for your current job, or to become wealthy, your choice of home based business should be able to deliver you to that level of success. If you want to earn money, while being able to have more freedom and flexibility, make sure your chosen endeavor can help you achieve that as well.

Even if some of the home based business opportunities you find seem to be exactly what you're looking for, there are many opportunities that simply fail to deliver on their promise. It's been a hallmark of home based business that there are many opportunities that simply fail to deliver anything close to the success promised. If you treat your new business as a real business, rather than a hobby, with all that that entails, you should be able to make a profit from it.

There are ways to find out weather or not the opportunity you're looking at has the potential to make you wealthy, or simply cost you money you don't have. Here are some ways to discover if an opportunity is real, or just another pipe dream.

1) Does the company or product have a solid history? If they can point to other successes, a promising history, or the product has been sold by other successful entrepreneurs, you may be onto something.

2) Bad reports about the company and/or product(s) from users or other business owners typically mean you should find another opportunity.

3) Is the company making claims that seem too good to be true? If they promise you that you can make a fortune with little or no work for instance, you should take that with a grain of salt. In the event they do make such claims, you should be able to verify (with 100% certainty) they are, in fact, true.

4) See if the company can show you recent success storied from satisfied business owners and/or customers. If the latest testimonials are from 2004, you might want to investigate something a bit more current. This is especially in the case of an Internet business. Time is compressed in Internet business. What was great 3 or 4 years ago may not be so good today.

5) If the company wants to make you pay to become a dealer, look elsewhere. This is not to be confused with a franchise fee, where you are buying a proven business system. On the other hand when the company makes a good percentage of their revenue from dealer or distributor fees, instead of actual product sales, you have to wonder why.

This should get you started on finding the right vehicle to carry you to the world of home based business success. Remember, no two people are alike. Just because an opportunity was right or wrong for one person, doesn't mean the same will hold true for you. Look at each opportunity as it will apply to you. Here's to your success.

There are so many Internet business opportunities available to you. It can be daunting. Choose the right Internet business, you could be a multi-millionaire in a few years. Choose the wrong one and you could wallow in debt induced despair for an eternity. Don't choose the wrong home based business, especially when there are some great ones. One of them could be perfect for you. Discover how you can be on the right Internet business track at the Home Based Business Opportunities Guide.